Streets Ahead : Streets Ahead Edition 11
13 While many market commentators point to current house prices and levels of household debt being sustainable, most Homeowners (63%) and Non- Property Owners (70%) believe that the housing market is overheated. Respondents from New South Wales are the most likely to believe there is an overheated housing market (73%), while South Australians are the least likely (47%). Of those in New South Wales who believe there is an overheated housing market, a significantly higher than average proportion say it is specific to Sydney only (38% compared to 19%). However, overall, Homeowners are equally likely to believe it is national (38%) and in only Sydney and Melbourne (38%), while Non-Property Owners are more likely to believe it is a national issue (47% compared to 34% who believe it is in only Sydney and Melbourne). Even with the perception that the housing market is overheated, the research shows this does not have a significant impact on whether consumers believe that now is a good time to buy a home or not. The percentage of consumers that believe now is a good time to buy a home fell from 52% to 48% between March and September 2015. However, when this data is analysed through the lens of the different views on future property prices, we find that 45% of those who believe the housing market is overheated still think that now is a good time to buy a home, while 52% of those that don’t think the property market is overheated believe the same. The conclusion here is that the outlook on future housing prices has a small impact on timing, but ultimately, interest rates and personal circumstances are more likely to determine whether now is a good time to buy or not. Among Prospective FHBs, the view on the future of the housing market has a bigger impact on whether they believe now to be a good time to buy a home. In fact 39% of Prospective FHBs who believe the property market is overheated think that now is a good time to buy a home, versus 50% of those that don’t think the property market is overheated. Perhaps spurred by media coverage on the investment property market, the main drivers of the property market overheating are seen as foreign buyers (32%) and property investors (19%) (see Figure 5). Queenslanders are significantly less Consumer perception of the state of the housing market The topic of a housing bubble in Australia has been widely debated and reported on in the media. This edition of Streets Ahead provides a consumer perspective on whether the housing market is overheated and the perceived drivers.
Streets Ahead Edition 12